17th May 2005 07:01
Schroders PLC17 May 2005 Schroders plc Trading Update 17th May 2005 Schroders plc is today issuing a trading update for the three months to 31stMarch 2005 prepared under International Financial Reporting Standards (IFRS).Results for 2004 have been restated from UK GAAP to IFRS in line with keychanges outlined in Schroders' IFRS announcement on 14th December 2004 togetherwith supplementary adjustments which have been made to certain figures as notedbelow. The Group made a positive start to the year, with first quarter profits beforetax of £50.4 million (Q1 2004*: £33.6 million). Asset Management Results Asset management revenues for the quarter were £146.3 million (Q1 2004*: £116.0million), costs were £104.9 million (Q1 2004: £90.2 million) and profits were£41.4 million (Q1 2004*: £25.8 million). Group Results Profits from Private Equity of £10.5 million (Q1 2004: £8.4 million) benefiteddirectly and indirectly from distributions by a number of private equity funds.Group net costs amounted to £1.5 million in the quarter (Q1 2004: net costs of£0.6 million). Funds under Management From an opening position of £105.6 billion at 1st January 2005, funds undermanagement rose 3.1 per cent in the quarter to £108.9 billion. Net businessinflows were £1.2 billion in the quarter, with net inflows of £1.6 billion inthe Retail business and £0.1 billion in Private Banking partially offset by netoutflows in the Institutional business of £0.5 billion. Pension Fund During April 2005, the Group transferred £30.3 million to the final salarysection of the Schroders Retirement Benefit Scheme to eliminate the FRS17deficit at 31st December 2004. This contribution has no impact on the Group'sequity as stated under IFRS and a minimal effect on pre-tax profits for theyear. Outlook Profitability was strong in the quarter due to higher management fee revenuesand good private equity returns. We are investing in our fund management and distribution capabilities to developfurther the position of the Group's products across a range of markets and assetclasses. We also continue to examine a range of external investmentopportunities to broaden and accelerate the strategic development of ourbusiness. Schroders plc will be issuing a further update on the effects of the transitionto IFRS in the near future. Interim results for 2005 will be announced in August. *Restated to reflect additional IFRS adjustments to the treatment of front endfees and the reclassification of certain current asset investments as'held for sale'. For further information, please contact: Jo Godfrey Tel: 020 7658 2589Acting Head of Corporate CommunicationsSchroders plc Forward-looking statements This trading update contains certain forward-looking statements with respect tothe financial condition, results, operations and businesses of Schroders plc.These statements and forecasts involve risk and uncertainty because they relateto events and depend upon circumstances that will occur in the future. There area number of factors that could cause actual results or developments to differmaterially from those expressed or implied by these forward-looking statementsand forecasts. Nothing in this trading update should be construed as a profitforecast. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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